Billionaire Warren Buffett is reportedly supporting a consortium bidding for Yahoo’s core internet assets.
Buffett, Chairman and CEO of Berkshire Hathaway, is among a group that includes Dan Gilbert, the founder of Quicken Loans.
A number of reports from publications such as the Financial Times claim that Buffett has co-signed a letter from the group and agreed to provide debt financing to the investors.
The latest news is expected to strengthen Yahoo’s sale plans. At Berkshire Hathaway’s annual meeting last month, Buffett admitted that his investment company had been slow to become associated with the new tech industry.
Earlier this month, Buffett said in an interview that Yahoo’s business had deteriorated significantly and something has to change. However, he did not reveal details of any potential bid.
Reuters reported that Susan Decker, who worked at Yahoo in various senior roles between 2000 and 2009, is now a director on Berkshire’s board.
The news agency quoted an interview Decker gave to CNBC television on 29 April: "I hope the next owner can do something to revitalise the spirit of the core things that made Yahoo very, very unique and create a distinction in consumers’ minds about why they love Yahoo still.
"It will be helpful if it is private or part of a much larger corporation to achieve that."
People familiar with the matter said the sale process of Yahoo is entering into its second phase as the company’s advisers are in negotiations with the credible bidders.
Verizon Communications is leading the list of potential bidders for Yahoo. The teleco plans to merge Yahoo with AOL, which it acquired for $4.4bn in 2015, to establish a digital advertising group in order to compete with Facebook and Google.
Yahoo has failed to meet the varying consumer requirements and advertising techniques, losing revenue to its rivals Twitter, Facebook and Google.
The company’s core operations continued to decline in the last four years under the leadership of Marissa Mayer.
Last month, Yahoo agreed to add four new independent directors to its board after continuous pressure from activist shareholder Starboard Value.
